Selling Business Myths – Part 2
Is your business at the top of its game? You have considered selling your business, but are holding out for that “one more” good year? Just recently I had a seller client who received a full price offer on his business…more than he had ever expected. You know what he did? Turned it down and waited one more year! This decision pained me. Not because I wanted to just get the deal done, but because I have seen this logic too often go wrong. In the seller’s mind he thinks that next year he will get back out there with double the earnings and bring in an even bigger offer. But, more likely, that big fish that was just released won’t come back.
This is what we know for certain: there is no certainty! The risk/reward with privately held companies goes both ways. Why gamble your nest-egg on the next 12 months of potential profits? Who is to say the next year won’t have average or decreasing revenues? So, what is the real question here? Not if you can get more tomorrow, but are you ready for the next steps? Here are some signs that it’s really time to sell your business:
• You no longer want to make the financial commitments necessary to grow the business.
• You no longer want the burden of having all your capital tied into a business.
• You are ready to pull your chips off the table.
• You have had your business plans in place, but don’t have the energy or time to do the next steps.
• The thought of expansion is exhausting. • You have grown your business past the point of where you comfortably want to run it alone.
• You don’t get into the office like you used to. You would rather be out playing golf or enjoying free time.
• You have effectively managed your staff where you are no longer needed in the office every day. The business could run successfully without you.
• You have gotten your financials in order. You have reviewed or audited statements from your CPA for at least three years.